ParaSwap’s Newly Launched Governance Token, PSP, Tanks 45% After Team’s ‘Decentralization Maximizing’ Airdrop
Users located in the United States of America or the People’s Republic of China are not permitted to participate in the airdrop or even transact in PSP.
Decentralized exchange (DEX) ParaSwap launched its governance token, dubbed PSP, after repeatedly saying it won’t launch a token.
The newly launched PSP token, with a market cap of just over $105 million, went on to hit $2.10. Since then, the token has lost more than 45% of its value to now trade at $1.15, according to CoinGecko.
The token is currently trading at Uniswap, SushiSwap, Bybit, and Gate.io.
Launched in Sept. 2019, ParaSwap has facilitated about $12 billion in trading volume to date. It has raised $5.7 million in total funding so far, with its investors including Blockchain Capital, CoinGecko, and Aave founder Stani Kulechov.
ParaSwap is not planning any airdrop
— ParaSwap (@paraswap) October 1, 2021
PSP token is being retroactively airdropped to early users, but the community is not happy about it.
They are unhappy because only about 20,000 accounts, the early users of ParaSwap, will benefit when 1.3 million addresses interacted with the DEX. The ParaSwap team on Twitter said,
“We're sorry if you weren't part of this, we had to make a tradeoff between maximizing on decentralization or letting too many Sybil attackers in, we choose the first.”
These 20k accounts will be rewarded with 150 million tokens, representing 7.5% of PSP’s total supply of 2 billion.
The rest of the tokens are distributed among ParaSwap's core team (17.6%), future team members (5%), seed investors (14%), pre-seed investors and advisors (2.4%), and reserves (10%), with a 51% allocation for the ecosystem.
Moreover, users in China and the United States cannot participate in this airdrop.
“If you are located in, incorporated or otherwise established in, or a resident of the United States of America or People’s Republic of China, you are not permitted to receive a distribution of, or transact in PSP.”
Trader Sisyphus, who received 10.4k PSP tokens for contributing over 9-figure volume to the protocol, called this airdrop impressively executed.
paraswap airdrop is impressively executed
-most accounts, including lot of real human beings got zero'd (no tokens)
-power users with hundreds of millions of volume got basically the same airdrop as average users
— Sisyphus (@0xSisyphus) November 15, 2021
Shresth Agrawal, an algorithm designer at ParaSwap, took to Twitter to share the criteria for being eligible for the airdrop.
To be eligible, one needs to pass all three requirements at the time of the snapshot taken on October 8th and noted:
“transactions with native tokens un/wrapping or involving tokens with traded volume less than $1 million are not considered.”
Each address is assigned a score based on the total transaction count, the total traded volume, the volume of the biggest transaction, and if ParaSwap is used in more than one network, as per which they receive 10.4K, 7.8K, or 5.2K PSP tokens.
Users from all networks ETH, BSC, Polygon, and Avax, partner projects' including MetaMask, Zapper, Zerion, Debank, Ledger, Cowswap, Instadapp, and Argen, and projects using relayers like Argent and Cowswap were all considered.